What it takes to set up a wealth boutique: Simon Davies

Leaving a well-paid job as a board member of a distinguished private client business is not done lightly. Yet Simon Davies (pictured) says the urge to strike out on his own was so strong there was never another option.

In late 2004, former Berry Asset Management executive left the company to found SC Davies, a small private bank that today bears his name.

‘It was almost like a bright shining light that I had to go off and found a business. It was absolutely banging on my skull that this was the time to go and do it,’ Davies says.

‘I actually never thought “here is a range of options at 34 years of age”. I had simply got as far as I could working for someone else.’

The big decision

Well aware Berry founder and chief executive Jamie Berry was not stepping down any time soon, Davies teamed up with Paul Denley and Hugh Scotney, now his chief investment officer and chairman, to set up on his own.

Although it was five years ago, Davies is quick to point out that unequivocally the biggest challenge was money. ‘I was not prepared to compromise on how we financed the set up of the business. I wanted all of our board members to fund the company with our own money and not have outside shareholders.’

But Davies concedes that, being relatively young at that point, the amount of wealth any of them had accumulated was relatively limited. ‘We have had to sell cars and houses, and convince wives and girlfriends that it was a good idea,’ he says.

Money required

For those looking to set up a wealth management boutique, Davies says the board should have access to £500,000 to keep the regulator happy.